House Price Index (HPI): May 2010

While sales levels were dropping, prices were still on the rise in May according to the Teranet-National Bank House Index. Canadian home prices in May were up 13.6% from a year earlier.

Teranet – National Bank National Composite House Price Index™

The 12-month gain was most influenced by:

Vancouver (+17.1%)

Toronto (+16.0%)

Ottawa (+11.4%)

Montreal (+8.5%)

Halifax (+5.6%)

May was the second consecutive month in which prices were up from the month before in all 6 metropolitan areas surveyed. The monthly rise of the composite index, 1.3%, was the largest since last September.

The month-over-month rise was:

Ottawa (+2.3%)

Montreal (+1.8%) -the largest gain in this market since June 2007

Vancouver (+1.2%)

Toronto (+1.1%)

Halifax (+0.7%)

Calgary Prices

In Calgary, prices were up 7.8% from the previous year, and up 1.2% from the previous month.

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The Teranet report included the following commentary:

Since market conditions have been loosening across Canada – from April to June of this year, the number of existing homes sold declined much faster than the number of new listings – it is too early to conclude that the relatively vigorous prices rises of April and May mark the beginning of a trend.